Survey reflects optimism of female enterpreneurs

At the January meeting of the local chapter of the National Association of Women Business Owners, President Loreen Gilbert asked how many of the 100 attendees had outstanding business results in 2012. Not an OK year or good year, but a banner year.

Ten women stood up.

So Gilbert wasn't surprised when the State of Women-Owned Businesses survey released this month showed eight out of 10 women are optimistic about their firms' performance in 2013.

The survey also found that 66 percent are more optimistic than they were in 2011 and 10 percent were less so. The survey was conducted online by Web.com Group Inc. and the national association.

"I think our business owners are upbeat because their business has improved," Gilbert said. "Women business owners tend to be more optimistic than male business owners. But women are especially upbeat about their own business performance and outlook."

The group's survey results did seem to reflect a higher level of confidence than recent surveys by the National Federation of Independent Business and National Small Business Association, whose respondents are both men and women.

Women own about 8.3 million U.S. businesses, 30 percent of the total, according to American Express Open. Their revenues exceed $1.2 trillion, and they provide 7.4 million jobs, according to the U.S. census.

The Orange-Los Angeles counties area has 418,000 female-owned businesses, second only to New York City.

Gilbert is in a position to analyze the mood of Orange County's female entrepreneurs. She not only is president of one of the largest chapters of women business owners in the country, but she also owns WealthWise Financial Services, an Irvine wealth-management firm with many business-owner clients.

So I asked her to analyze some of the major findings of the State of Women-Owned Businesses survey.

OPTIMISTIC ABOUT WHAT?

Female business owners are optimistic, not euphoric, the survey found. Thirty-nine percent are very optimistic, and 43 percent are somewhat optimistic.

"The hopeful part is that women are reinvesting in their businesses again," Gilbert said. "They're spending on infrastructure and equipment. They're spending more money on marketing. The public relations firms I know have had a big pickup in business ... and the marketing firms say businesses are spending more on collateral."

More than a third of survey respondents – 38.2 percent – plan to hire more people than they did in 2011. Gilbert said she believes this is true locally as well because owners of staffing agencies she knows report a significant increase in business.

More Orange County female entrepreneurs are showing signs of taking their businesses to the next level by seeking state certification as Women Business Enterprises, which the national association helps women attain, Gilbert added. Such certification helps when competing for contracts with the government and major corporations.

Another reflection of entrepreneurs' optimism, Gilbert said, is that almost 85 percent of survey respondents expect more women to start new businesses in 2013.

"It's a dream of a lot of women to have their own business, and these existing business owners are role models for women who want to start businesses. Maybe like-minded people attract each other," she said.

NOT ALL ROSES

Still, there are significant issues weighing on female business owners, the survey found. The most important issues for their businesses are the state of the economy (89 percent), business taxes (69 percent) and health insurance costs (68 percent).

"They're focused on the economy because it is the element they can't control," Gilbert said. "The great lesson that came out of the Great Recession is that women business owners are staying more attuned to what's going on. They know how (the economy and public policy issues) affected them before and the need to make contingency plans."

In Orange County, she added, "A couple of things come up most: health care costs, not just immediately but longer term, and tax increases in California."

The concerns are broader than provisions of the Affordable Care Act that begin this year.

Seventy-one percent of survey respondents said the health care law would have no impact on their businesses, which makes sense as only 4.6 percent of them have50 or more employees – the point at which employee health insurance mandates apply.

Still, many female business owners need health insurance for themselves and their families.

"A lot of business owners I talk to would like to retire earlier, and they have to figure out how to cover the health coverage gap," Gilbert said.

Voters in California passed Proposition 30 in November, increasing the state income tax on taxable income of more than $250,000.

"More people than I have ever seen before are saying, 'Is there any way I can get out of state?'" Gilbert said. "And that perception is confirmed by the CPAs I know."

Women in groups such as the National Association of Women Business Owners tend to pay more attention to public policy issues, she added. The group will travel to Sacramento from March 18 to 19 to meet with legislators.

MOTIVATORS FOR WOMEN

Despite the challenges of recent years, women are motivated to start and stay in business by more than money. According to the survey, the top motivations are following their vision (28 percent) and finding a marketable idea (21 percent).

"I think the biggest motivator wasn't listed: work-life balance," Gilbert said. "It's ironic that although business owners do have some flexibility, they work more than others.

"I started my business because I wanted to be married and have a family, and I thought the best way to do that was having my own business. But now I'm single and no children!"